Categorized | Singapore Trading News

LME, SGX to Start Lead, Steel Futures in Third Quarter

The London Metal Exchange and Singapore Exchange Ltd. (SGX) will begin trading lead and steel futures on the Singapore bourse in the third quarter, according to Liz Milan, managing director for LME Asia.

Each dollar-denominated lead contract will represent five metric tons of metal, while the steel contract will represent 10 tons of the alloy, compared with the benchmark 25-ton and 65-ton contracts traded in London, Milan said in an interview in Singapore.

The LME is expanding in Asia as growth in the region is “structural,” Chief Executive Officer Martin Abbott said in July. The Singapore Exchange started trading LME-SGX copper, zinc and aluminum futures on Feb. 15 after opening an office in Singapore last year.

“We’ve got some market makers, we’ve got active traders but you need liquidity,” Milan said. “It’s reached the first level and we really need to kick it on now to increase liquidity to bring in players who are watching.”

At the end of April, 27,816 lots of copper had been traded, according to bourse data. This compares with 395 lots of the LME’s own reduced-sized contracts, known as LMEminis, and 11.2 million lots for the 25-ton contract traded in the first four months of this year.

“We’re going to make a bigger push in Singapore, Hong Kong and China to see if we can engage them to the next level,” Milan said on May 11.

Adapted from: Bloomberg (By: Glenys Sim)

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Symbol Bid Ask Spread
EURUSD 1.18290 1.18310 2
GBPUSD 1.31690 1.31720 3
USDCAD 1.24810 1.24840 3
USDJPY 112.430 112.450 2
USDCHF 0.97540 0.97570 3
AUDUSD 0.78640 0.78670 3
NZDUSD 0.70220 0.70270 5
EURGBP 0.89800 0.89830 3
EURCHF 1.15390 1.15420 3
EURJPY 132.990 133.020 3
AUDJPY 88.420 88.470 5
GBPJPY 148.060 148.120 6
XAUUSD 1285.57 1285.97 40
XAGUSD 16.969 17.019 5